New Keynesian Phillips Curve

E916117

Phillips curve specification inflation dynamics model macroeconomic relationship

The New Keynesian Phillips Curve is a macroeconomic relationship that links inflation dynamics to expected future inflation and real economic activity, derived from models with nominal rigidities and forward-looking behavior.

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All labels observed (4)

Label	Occurrences
New Keynesian Phillips curve	6
New Keynesian DSGE models	2
New Keynesian Phillips Curve canonical	1
New Keynesian Phillips Curve is broadly consistent with euro area data	1

How this entity was disambiguated

This entity first appeared as the object of triple T11270062 — resolving that mention is where its identity was fixed. The disambiguator weighed these candidate entities and picked the highlighted one (or “None”, minting a new entity). This is how homonymy is resolved: the same surface form can point to different entities.

NED1 Entity disambiguation (via context triple) gpt-5-mini-2025-08-07

Target entity: New Keynesian Phillips Curve
Context triple: [The New Keynesian Phillips Curve: Time Series Evidence from the Euro Area, mainConcept, New Keynesian Phillips Curve]

A. The New Keynesian Phillips Curve: Time Series Evidence from the Euro Area
"The New Keynesian Phillips Curve: Time Series Evidence from the Euro Area" is an influential empirical economics paper by Jordi Galí that tests and supports New Keynesian inflation dynamics using euro area data.
B. Phillips curve framework
The Phillips curve framework is a macroeconomic concept that posits an inverse relationship between inflation and unemployment, shaping policymakers’ understanding of inflation dynamics and trade-offs in the postwar era.
C. New Neoclassical Synthesis
The New Neoclassical Synthesis is a macroeconomic framework that blends key elements of New Keynesian and New Classical theories, using microfounded models with rational expectations and nominal rigidities to analyze monetary and fiscal policy.
D. New Keynesian economics
New Keynesian economics is a modern macroeconomic framework that incorporates rational expectations and micro-founded price and wage rigidities to explain short-run economic fluctuations and justify active stabilization policy.
E. Keynesian business cycle theories
Keynesian business cycle theories explain economic fluctuations primarily through changes in aggregate demand, emphasizing the roles of price and wage rigidities, government policy, and market imperfections in causing and mitigating recessions and booms.
F. None of above. chosen
G. Unsure - the case is ambiguous/there is not enough information to decide.

NED2 Entity disambiguation (via description) gpt-5-mini-2025-08-07

Target entity: New Keynesian Phillips Curve
Target entity description: The New Keynesian Phillips Curve is a macroeconomic relationship that links inflation dynamics to expected future inflation and real economic activity, derived from models with nominal rigidities and forward-looking behavior.

A. The New Keynesian Phillips Curve: Time Series Evidence from the Euro Area
"The New Keynesian Phillips Curve: Time Series Evidence from the Euro Area" is an influential empirical economics paper by Jordi Galí that tests and supports New Keynesian inflation dynamics using euro area data.
B. Phillips curve framework
The Phillips curve framework is a macroeconomic concept that posits an inverse relationship between inflation and unemployment, shaping policymakers’ understanding of inflation dynamics and trade-offs in the postwar era.
C. New Neoclassical Synthesis
The New Neoclassical Synthesis is a macroeconomic framework that blends key elements of New Keynesian and New Classical theories, using microfounded models with rational expectations and nominal rigidities to analyze monetary and fiscal policy.
D. New Keynesian economics
New Keynesian economics is a modern macroeconomic framework that incorporates rational expectations and micro-founded price and wage rigidities to explain short-run economic fluctuations and justify active stabilization policy.
E. Keynesian business cycle theories
Keynesian business cycle theories explain economic fluctuations primarily through changes in aggregate demand, emphasizing the roles of price and wage rigidities, government policy, and market imperfections in causing and mitigating recessions and booms.
F. None of above. chosen

Statements (49)

Predicate	Object
instanceOf	Phillips curve specification ⓘ inflation dynamics model ⓘ macroeconomic relationship ⓘ
associatedWith	Guillermo Calvo ⓘ Jordi Galí ⓘ Mark Gertler ⓘ Michael Woodford ⓘ
basedOn	New Keynesian economics ⓘ
contrastsWith	accelerationist Phillips curve ⓘ linked to: Phillips curve framework expectations-augmented Phillips curve ⓘ traditional backward-looking Phillips curve ⓘ linked to: Phillips curve framework
coreEquation	current inflation depends on expected future inflation and real marginal cost ⓘ
derivedFrom	Calvo pricing model ⓘ linked to: Calvo price-setting framework intertemporal optimization by firms ⓘ models with nominal price rigidities ⓘ
describes	inflation dynamics ⓘ relationship between inflation and real economic activity ⓘ
empiricalIssue	difficulty in measuring real marginal cost ⓘ slope of the Phillips curve is often estimated to be small ⓘ
field	macroeconomics ⓘ monetary economics ⓘ
hasCharacteristic	forward-looking expectations ⓘ microfoundations ⓘ nominal rigidities ⓘ rational expectations ⓘ staggered price setting ⓘ time-dependent price setting ⓘ
hasVariant	backward- and forward-looking New Keynesian Phillips Curve ⓘ hybrid New Keynesian Phillips Curve ⓘ
implies	inflation persistence can arise from structural frictions ⓘ monetary policy affects inflation via expectations ⓘ
parameter	degree of price rigidity ⓘ elasticity of substitution between differentiated goods ⓘ share of firms that cannot reset prices each period ⓘ β (subjective discount factor) ⓘ κ (slope of the Phillips curve) ⓘ
relatesTo	current inflation ⓘ expected future inflation ⓘ monetary policy transmission ⓘ output gap ⓘ real marginal cost ⓘ
timePeriod	developed in late 20th century ⓘ
typicalForm	π_t = β E_t[π_{t+1}] + κ x_t + u_t ⓘ
usedIn	New Keynesian DSGE models ⓘ linked to: New Keynesian Phillips Curve central bank macroeconomic models ⓘ dynamic stochastic general equilibrium models ⓘ monetary policy analysis ⓘ
usesConcept	output gap as proxy for marginal cost ⓘ real marginal cost as driving variable ⓘ

How these facts were elicited